options for first question: more effective, the same, less effective
Homework Answers
In an open economy the monetary policy is more effective.
"B"
Because that will lead to a lower value of dollar and that will increase the exports decreasing the imports.
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options for first question: more effective, the same, less
effective
As compared to a closed economy,...
JESUS In and the value of the dollar decreases. QUESTION 21 Interest rate Supply Supply when...
JESUS In and the value of the dollar decreases. QUESTION 21 Interest rate Supply Supply when monetary policy enhances the supply level Quantity of Money Referring to the diagram above, which of the following statements is truer Monetary policy that increases the money supply also increases the level of potential GDP. Tight monetary policy expands the economy by increasing the level of potential GDP. This contractionary monetary policy shift will also affect exchange rates for both imports and exports. This...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
Which of the following characteristics describe the US economy a) fixed exchange rates, open capital markets,...
Which of the following characteristics describe the US economy a) fixed exchange rates, open capital markets, flexible interest rates b) flexible exchange rate, open capital markets, control of monetary policy c) fixed exchange rate, closed capital markets, no control of monetary policy d) flexible exchange rate, open capital markets, no control over monetary policy
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through changes in the real interest rate and affectsthrough changes in the Points out of 1.0...
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through changes in the real interest rate and affectsthrough changes in the Points out of 1.00 exchange rate. r Remove flag Select one: A. Consumption and investment; net exports O B. net exports; taxes and saving o c. productivity and growth; consumption O D. taxes and saving; net exports
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through...
True or false? Explain your answer. a. An closed economy have a lower unemployment rate in...
True or false? Explain your answer. a. An closed economy have a lower unemployment rate in the long run than a opened economy. b. The government may issue more currencies to make up for the budget deficit, which will cause the exchange rate of the national currency to depreciate. The government may issue national bonds to make up for the budget deficit, which will cause the exchange rate of the national currency to appreciate.
Why may an expansionary monetary policy be less effective than a restrictive monetary policy? the Federal...
Why may an expansionary monetary policy be less effective than a restrictive monetary policy? the Federal Reserve Banks are always willing to make loans to commercial banks which are short of reserves. commercial banks may not be able to find loan customers. fiscal policy always works at cross purposes with an expansionary monetary policy. changes in exchange rates complicate an expansionary monetary policy more than it does a restrictive monetary policy.
QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate...
QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate increases which of the following? a. national saving and domestic investment b. national saving and the net capital outflow c. domestic investment and the net capital outflow d. national saving only 2. An appreciation of a nation's currency can be the result of which of the following? a. an increase in net exports b. a decrease in net exports c. a fall in national...
17 18 QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
These questions refer to Purchasing Power Parity. According to Interest Rate Parity, how would the dollar...
These questions refer to Purchasing Power Parity. According to Interest Rate Parity, how would the dollar respond (appreciate, depreciate, no change) against the Euro in reaction to an average European inflation rate of 2.2%? The US inflation rate is 4% in this example—the term in question is 1 year. Please use this data for a and b and c. A. Consider the relationship between expansionary monetary policy. the value of the dollar, and net imports. How does this new dollar...
Pls do not handwrite the answer, this is for easy reading Question 4 a)Country Alpha has...
Pls do not handwrite the answer, this is for easy reading Question 4 a)Country Alpha has a fixed exchange rate system and free capital mobility. Due to an economic recession and a trade deficit, it is pursuing an expansionary fiscal policy to improve the country’s balance of payments. Illustrate and discuss if this expansionary fiscal policy is effective to achieve the country’s economic growth and balance of payments. b)Country Sigma is an open economy with a flexible exchange rate and...
JESUS In and the value of the dollar decreases. QUESTION 21 Interest rate Supply Supply when monetary policy enhances the supply level Quantity of Money Referring to the diagram above, which of the following statements is truer Monetary policy that increases the money supply also increases the level of potential GDP. Tight monetary policy expands the economy by increasing the level of potential GDP. This contractionary monetary policy shift will also affect exchange rates for both imports and exports. This...
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through changes in the real interest rate and affectsthrough changes in the Points out of 1.00 exchange rate. r Remove flag Select one: A. Consumption and investment; net exports O B. net exports; taxes and saving o c. productivity and growth; consumption O D. taxes and saving; net exports
Question 100In an open economy with flexible exchange rates, monetary policy affects Not yet answered through...
QUICK CHECK multiple choice 1. Holding other things constant, an increase in the world interest rate increases which of the following? a. national saving and domestic investment b. national saving and the net capital outflow c. domestic investment and the net capital outflow d. national saving only 2. An appreciation of a nation's currency can be the result of which of the following? a. an increase in net exports b. a decrease in net exports c. a fall in national...
17 18
QUESTION 17 Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O depreciate; rise appreciate; fall O depreciate; fall QUESTION 18 A balance of payments crisis is OA a sharp change in interest rates sparked by a change in expectations about the level of exports. ов. a sharp change in foreign reserves sparked by...
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